Cost- Home insurance premiums have continued rising through 2026, extending a multi-year trend rather than a sudden new development.
- Climate-related claims (flooding, wildfire, severe storms) and rising rebuilding costs are the two most cited drivers behind the increases.
- Premium increases vary significantly by region based on specific local climate risk exposure.
The two main drivers behind rising premiums
Insurers cite two primary factors behind the sustained rise in home insurance premiums: an increase in climate-related claims (flooding, wildfire, and severe storm damage occurring more frequently and severely in various regions), and general inflation in rebuilding costs — materials and labour to reconstruct a home after a claim have both become meaningfully more expensive.
Why increases vary so much by region
Regions with higher specific climate risk exposure — flood-prone areas, wildfire-interface zones — have generally seen larger premium increases than lower-risk regions, reflecting insurers' more granular, location-specific risk assessment rather than a flat, uniform increase applied everywhere.
How to manage the cost as a buyer or owner
Get a real insurance quote for a specific property before finalizing your budget, rather than relying on a generic estimate, since location-specific risk can meaningfully change the number. Ask about bundling, deductible adjustments, and any claims-free discounts, and factor your actual quote into your total monthly housing cost rather than an outdated placeholder figure.
- Statistics Canada — accessed September 2026